William Blair analyst Louie DiPalma has reiterated their bullish stance on HEI stock, giving a Buy rating on March 17.
Louie DiPalma’s rating is based on a combination of factors that highlight HEICO’s strong growth potential and strategic positioning in the aftermarket sector. The company has demonstrated the ability to expand its aftermarket business organically, with expectations of high-single-digit to low-teens growth, driven by the increasing market share of PMA parts. This growth is further supported by the successful integration of Wencor, which has exceeded expectations and enhanced HEICO’s capabilities and geographic reach.
Additionally, HEICO’s PMA parts continue to attract more MROs and airlines due to their cost-effectiveness, being priced significantly lower than OEM parts. The company’s resilience in the aftermarket, even during periods of increased aircraft production, underscores its robust business model. With a strong cultural fit and synergy from the Wencor acquisition, HEICO is well-positioned to sustain its growth trajectory, justifying the Buy rating.
In another report released on March 17, Bank of America Securities also maintained a Buy rating on the stock with a $320.00 price target.